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Amazon’s Growth in Smart Speaker Shipments Is Slowing Down

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Amazon is still the leader in smart speakers

Amazon (AMZN) said in its Q4 earnings report that its Amazon Echo Dot was the best-selling item on its platform. Amazon’s Echo and its variants have become extremely popular, especially in the US, over the last few years. While it is still the leader in the smart speaker segment, other players are chipping away at its market share. Several reports suggest that Amazon is still well ahead of Alphabet’s (GOOG) Google in the segment.

However, according to the latest report by Canalys, Google’s Home devices saw a surge in popularity in 2018. The report estimates that Amazon’s smart speaker shipments grew 31% sequentially in the fourth quarter of 2018.

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Chinese vendors boosted global smart speaker growth in 2018

Canalys said that the total smart speaker shipments grew a stunning 124.7% in 2018 to reach 78 million shipments. Amazon sold 24.2 million of those, representing only a 10.1% annual increase.

Its market share fell from 63.4% in 2017 to 31.1% last year. Google’s shipments more than doubled to 23.4 million shipments in 2018, and its market share fell slightly to 30.0%.

Smart speakers made by Chinese companies like Alibaba (BABA), Xiaomi (XIACF), and Baidu (BIDU) experienced phenomenal growth in 2018, as the graph above shows.

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